EX-99.1 3 exhibit991earningsrelease0.htm EX-99.1 Document

Exhibit 99.1
NEWS
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CONTACT:     Brian J. Richardson
UNIVEST FINANCIAL CORPORATION
Chief Financial Officer
215-721-2446, richardsonb@univest.net                     

FOR IMMEDIATE RELEASE

UNIVEST FINANCIAL CORPORATION REPORTS THIRD QUARTER RESULTS

SOUDERTON, Pa., October 26, 2022 - Univest Financial Corporation (“Univest” or the "Corporation") (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended September 30, 2022 was $20.8 million, or $0.71 diluted earnings per share, compared to net income of $20.9 million, or $0.71 diluted earnings per share, for the quarter ended September 30, 2021.

One-Time Items
The financial results for the three and nine months ended September 30, 2022 included tax-free bank owned life insurance ("BOLI") death benefit claims of $446 thousand, which represented $0.02 diluted earnings per share for both periods.

Loans
Gross loans and leases, excluding Paycheck Protection Program ("PPP") loans1, increased $190.6 million, or 13.5% (annualized), from June 30, 2022, $568.8 million, or 14.4% (annualized), from December 31, 2021 and $680.6 million, or 13.2%, from September 30, 2021 primarily due to increases in commercial, commercial real estate, construction, residential mortgage loans, and lease financings.
Deposits
Total deposits increased $223.9 million, or 16.1% (annualized), from June 30, 2022, primarily due to increases in public funds deposits partially offset by decreases in commercial deposits. Total deposits decreased $268.1 million, or 5.9% (annualized), from December 31, 2021, primarily due to decreases in
1 Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document.


commercial and consumer deposits. Total deposits decreased $151.2 million, or 2.5%, from September 30, 2021, primarily due to a decrease in public funds deposits.

Net Interest Income and Margin
Net interest income of $58.3 million for the three months ended September 30, 2022 increased $6.8 million, or 13.2%, from the three months ended June 30, 2022, and $9.6 million, or 19.6%, from the three months ended September 30, 2021. The increase in net interest income for the three months ended September 30, 2022 compared to the same period of 2021 and the prior quarter was largely due to significant loan growth, the rapid increase in interest rates and the asset sensitivity position of the Corporation's balance sheet.

Net interest margin, on a tax-equivalent basis, was 3.67% for the third quarter of 2022, compared to 3.19% for the second quarter of 2022 and 3.11% for the third quarter of 2021. Excess liquidity reduced net interest margin by approximately one basis point for the quarter ended September 30, 2022 compared to 23 basis points for the quarter ended June 30, 2022 and 27 basis points for the quarter ended September 30, 2021. PPP loans had no impact on net interest margin for the quarter ended September 30, 2022 compared to one basis point for the quarter ended June 30, 2022 and 20 basis points for the quarter ended September 30, 2021. Excluding the impact of excess liquidity and PPP loans, the net interest margin, on a tax-equivalent basis, was 3.68% for the quarter ended September 30, 2022 compared to 3.41% for the quarter ended June 30, 2022 and 3.18% for the quarter ended September 30, 2021.

Noninterest Income
Noninterest income for the quarter ended September 30, 2022 was $18.0 million, a decrease of $2.6 million, or 12.6%, compared to the third quarter of 2021.

Net gain on mortgage banking activities decreased $2.4 million, or 74.7%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year, primarily due to a decrease in loan sales and a contraction of margins. BOLI increased $228 thousand, or 24.6%, for the quarter compared to the comparable period in the prior year, primarily due to death benefit claims of $446 thousand in the third quarter of 2022. Investment advisory commission and fee income decreased $597 thousand, or 12.4%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year, primarily due to reduced assets under management, which was driven by market performance.

Other income decreased $758 thousand, or 46.6%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year. Gains on the sale of Small Business Administration loans


decreased $520 thousand for the quarter due to decreased sale activity. Fees on risk participation agreements for interest rate swaps decreased $171 thousand for the quarter driven by a decrease in customer demand due to the current interest rate environment.

Insurance commission and fee income increased $605 thousand, or 15.8%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year, primarily due to incremental revenue attributable to the acquisition of the Paul I. Sheaffer insurance agency in the fourth quarter of 2021.

Other service fee income increased $548 thousand, or 21.3%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year. Mortgage servicing fees increased $336 thousand for the quarter driven by reduced amortization as a result of a decrease in prepayment speeds.

Noninterest Expense
Noninterest expense for the quarter ended September 30, 2022 was $46.7 million, an increase of $3.4 million, or 7.9%, compared to the third quarter of 2021. The results for the three months ended September 30, 2022 included approximately $1.2 million in expenses related to our digital transformation initiative, a comprehensive digital platform which will blend our core operating systems together and allow Univest to seamlessly sell existing products and services, digitally, across an expanded footprint.

Salaries, benefits and commissions increased $2.8 million, or 10.4%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year. This increase reflects the insurance acquisition in the fourth quarter of 2021, our expansion into Maryland and Western PA, and annual merit increases.

Professional fees increased $347 thousand, or 16.0%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year. The increase for the three months ended September 30, 2022 was primarily due to $1.0 million in consultant fees attributable to the previously discussed digital transformation initiative, as compared to our $585 thousand investment in our Diversity, Equity and Inclusion program, training initiatives and treasury management product enhancements for the three months ended September 30, 2021.

Data processing expenses increased $627 thousand, or 19.2%, for the quarter ended September 30, 2022 compared to the comparable period in the prior year, primarily due to continued investments in technology including $180 thousand in support of the previously discussed digital transformation initiative for the respective period.



Tax Provision
The effective income tax rate was 19.7% for the nine months ended September 30, 2022, compared to an effective income tax rate of 19.4% for the nine months ended September 30, 2021. The effective tax rate for the nine months ended September 30, 2022 and 2021 reflects the benefits of tax-exempt income from investments in municipal securities and loans and leases. Additionally, the effective tax rate for the nine months ended September 30, 2022 was favorably impacted by discrete tax benefits and proceeds from BOLI death benefits. Excluding these items, the effective tax rate was 20.1% for the nine months ended September 30, 2022.

Asset Quality and Provision for Credit Losses
Nonperforming assets were $33.0 million at September 30, 2022, compared to $34.8 million at June 30, 2022 and $37.1 million at September 30, 2021.

Net loan and lease charge-offs were $1.2 million and $1.7 million for the three months ended September 30, 2022 and June 30, 2022, respectively, compared to net loan and lease recoveries of $75 thousand for the three months ended September 30, 2021. Net loan and lease charge-offs were $3.0 million and $456 thousand for the nine months ended September 30, 2022 and September 30, 2021, respectively.

The provision for credit losses was $3.6 million for the third quarter of 2022 compared to a provision for credit losses of $6.7 million for the second quarter of 2022 and a reversal of provision of $182 thousand for the third quarter of 2021. The provision for credit losses was $6.8 million for the nine months ended September 30, 2022 compared to a reversal of provision for credit losses of $11.5 million for the comparable period in the prior year. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at September 30, 2022 compared to 1.27% at June 30, 2022 and 1.34% at September 30, 2021.

Share Repurchases
During the three months ended September 30, 2022, the Corporation repurchased 150,000 shares at an average price of $25.41, for an aggregate cost of $3.8 million. During the nine months ended September 30, 2022, the Corporation repurchased 450,000 shares at an average price of $25.29, for an aggregate cost of $11.4 million. As of September 30, 2022, the Corporation has 229,174 shares remaining to repurchase under the program that was approved on May 27, 2015. On October 26, 2022, the Corporation’s Board of Directors approved an increase of 1,000,000 in the shares available for repurchase under the Corporation’s share repurchase program.



Dividend
On October 26, 2022, Univest declared a quarterly cash dividend of $0.21 per share to be paid on November 23, 2022 to shareholders of record as of November 9, 2022.

Conference Call
Univest will host a conference call to discuss third quarter 2022 results on Thursday, October 27, 2022 at 9:00 a.m. EST. Participants may preregister at https://www.netroadshow.com/events/login?show=7205620b&confId=42951. The general public can access the call by dialing 1-844-200-6205; using Access Code 478630. A replay of the conference call will be available through November 24, 2022 by dialing 1-866-813-9403; using Access Code: 211821.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $6.9 billion in assets and $4.0 billion in assets under management and supervision through its Wealth Management lines of business at September 30, 2022. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.  
# # #
This press release and the reports Univest files with the Securities and Exchange Commission often contain "forward-looking statements" relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest's future results, business or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations or lead to higher operating costs; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) changes in economic conditions nationally and in our market; (5) economic assumptions that may impact our allowance for credit losses calculation; (6) legislative, regulatory or tax changes; (7) technological issues that may adversely affect our operations or those of our customers; (8) changes in the securities markets; (9) the continuing effects resulting from the COVID-19 pandemic on our business and results of operation; (10) the current or anticipated impact of military conflict, terrorism or other geopolitical events; and/or (11) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

(UVSP - ER)


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2022
(Dollars in thousands)
Balance Sheet (Period End)9/30/20226/30/20223/31/202212/31/20219/30/2021
ASSETS
Cash and due from banks $65,859 $59,590 $57,307 $49,202 $67,517 
Interest-earning deposits with other banks 47,451 35,187 716,474 840,948 834,840 
Cash and cash equivalents113,310 94,777 773,781 890,150 902,357 
Investment securities held-to-maturity159,170 159,808 166,339 176,983 112,643 
Investment securities available for sale, net of allowance for credit losses347,479 351,382 349,994 317,007 277,773 
Investments in equity securities2,994 2,934 2,569 2,999 2,961 
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost29,475 29,116 26,330 28,186 28,679 
Loans held for sale9,087 8,352 14,521 21,600 29,093 
Loans and leases held for investment5,849,259 5,661,777 5,400,786 5,310,017 5,252,045 
Less: Allowance for credit losses, loans and leases (74,929)(72,011)(68,286)(71,924)(70,146)
Net loans and leases held for investment5,774,330 5,589,766 5,332,500 5,238,093 5,181,899 
Premises and equipment, net 50,533 50,080 50,429 56,882 55,354 
Operating lease right-of-use assets30,654 30,929 30,498 30,407 31,570 
Goodwill175,510 175,510 175,510 175,510 172,559 
Other intangibles, net of accumulated amortization11,650 11,728 11,784 11,848 9,359 
Bank owned life insurance120,035 120,103 119,398 118,699 117,981 
Accrued interest and other assets 83,170 76,328 54,087 54,057 57,624 
Total assets $6,907,397 $6,700,813 $7,107,740 $7,122,421 $6,979,852 
LIABILITIES
Noninterest-bearing deposits$1,968,422 $2,062,538 $2,136,467 $2,065,423 $1,861,007 
Interest-bearing deposits:3,818,554 3,500,510 3,911,465 3,989,701 4,077,147 
Total deposits 5,786,976 5,563,048 6,047,932 6,055,124 5,938,154 
Short-term borrowings80,711 97,606 18,976 20,106 14,101 
Long-term debt 95,000 95,000 95,000 95,000 95,000 
Subordinated notes 99,107 99,030 98,952 98,874 98,797 
Operating lease liabilities33,718 33,951 33,566 33,453 34,641 
Accrued expenses and other liabilities 57,698 48,253 39,459 46,070 43,136 
Total liabilities 6,153,210 5,936,888 6,333,885 6,348,627 6,223,829 
SHAREHOLDER'S EQUITY
Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued157,784 157,784 157,784 157,784 157,784 
Additional paid-in capital299,791 298,800 297,945 299,181 298,033 
Retained earnings410,942 396,295 389,332 375,124 363,607 
Accumulated other comprehensive loss, net of tax benefit(64,985)(42,781)(31,909)(16,353)(20,073)
Treasury stock, at cost(49,345)(46,173)(39,297)(41,942)(43,328)
Total shareholders’ equity754,187 763,925 773,855 773,794 756,023 
Total liabilities and shareholders’ equity$6,907,397 $6,700,813 $7,107,740 $7,122,421 $6,979,852 
For the three months ended,For the nine months ended,
Balance Sheet (Average)9/30/20226/30/20223/31/202212/31/20219/30/20219/30/20229/30/2021
Assets$6,797,466 $6,962,401 $7,047,980 $7,088,289 $6,698,177 $6,935,031 $6,509,576 
Investment securities, net of allowance for credit losses517,335 515,741 522,128 469,588 395,280 518,383 385,192 
Loans and leases, gross5,752,119 5,520,580 5,344,698 5,255,279 5,320,411 5,540,624 5,345,119 
Deposits5,645,291 5,903,173 5,984,815 6,041,798 5,666,725 5,843,182 5,439,345 
Shareholders' equity773,099 771,410 774,358 762,334 746,185 772,951 725,061 


Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
September 30, 2022
(Dollars in thousands)
Summary of Major Loan and Lease Categories (Period End)9/30/20226/30/20223/31/202212/31/20219/30/2021
Commercial, financial and agricultural$1,052,733 $1,028,354 $932,485 $956,396 $927,015 
Paycheck Protection Program2,207 5,358 10,298 31,748 85,601 
Real estate-commercial2,936,204 2,870,286 2,816,737 2,718,535 2,669,898 
Real estate-construction329,915 319,449 285,083 283,918 260,874 
Real estate-residential secured for business purpose443,837 419,652 412,486 409,900 412,001 
Real estate-residential secured for personal purpose685,771 629,144 568,735 540,566 535,705 
Real estate-home equity secured for personal purpose175,843 168,536 160,134 158,909 159,029 
Loans to individuals26,679 27,061 26,249 25,504 26,458 
Lease financings196,070 193,937 188,579 184,541 175,464 
Total loans and leases held for investment, net of deferred income5,849,259 5,661,777 5,400,786 5,310,017 5,252,045 
Less: Allowance for credit losses, loans and leases(74,929)(72,011)(68,286)(71,924)(70,146)
Net loans and leases held for investment$5,774,330 $5,589,766 $5,332,500 $5,238,093 $5,181,899 
Asset Quality Data (Period End)9/30/20226/30/20223/31/202212/31/20219/30/2021
Nonaccrual loans and leases, including nonaccrual troubled debt restructured loans and leases and nonaccrual loans held for sale$13,620 $13,355 $30,876 $33,210 $34,528 
Accruing loans and leases 90 days or more past due416 2,784 274 498 2,204 
Accruing troubled debt restructured loans and leases50 50 51 51 51 
Total nonperforming loans and leases14,086 16,189 31,201 33,759 36,783 
Other real estate owned18,960 18,604 279 279 279 
Total nonperforming assets$33,046 $34,793 $31,480 $34,038 $37,062 
Nonaccrual loans and leases / Loans and leases held for investment0.23 %0.24 %0.57 %0.63 %0.66 %
Nonperforming loans and leases / Loans and leases held for investment0.24 %0.29 %0.58 %0.64 %0.70 %
Nonperforming assets / Total assets0.48 %0.52 %0.44 %0.48 %0.53 %
Allowance for credit losses, loans and leases$74,929 $72,011 $68,286 $71,924 $70,146 
Allowance for credit losses, loans and leases / Loans and leases held for investment1.28 %1.27 %1.26 %1.35 %1.34 %
Allowance for credit losses, loans and leases / Loans and leases held for investment, excluding Paycheck Protection Program loans (1)1.28 %1.27 %1.27 %1.36 %1.36 %
Allowance for credit losses, loans and leases / Nonaccrual loans and leases held for investment550.14 %539.21 %221.16 %216.57 %203.16 %
Allowance for credit losses, loans and leases / Nonperforming loans and leases held for investment531.94 %444.81 %218.86 %213.05 %190.70 %
For the three months ended,For the nine months ended,
9/30/20226/30/20223/31/202212/31/20219/30/20219/30/20229/30/2021
Net loan and lease charge-offs (recoveries)$1,196 $1,715 $76 $(243)$(75)$2,987 $456 
Net loan and lease charge-offs (recoveries) (annualized)/Average loans and leases0.08 %0.12 %0.01 %(0.02)%(0.01)%0.07 %0.01 %
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document.


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2022
(Dollars in thousands, except per share data)
For the three months ended,For the nine months ended,
For the period:9/30/20226/30/20223/31/202212/31/20219/30/20219/30/20229/30/2021
Interest income$66,877 $56,717 $51,198 $52,262 $53,571 $174,792 $157,469 
Interest expense8,627 5,246 4,538 4,737 4,884 18,411 16,611 
Net interest income58,250 51,471 46,660 47,525 48,687 156,381 140,858 
Provision (reversal of provision) for credit losses3,558 6,674 (3,450)1,392 (182)6,782 (11,524)
Net interest income after provision for credit losses54,692 44,797 50,110 46,133 48,869 149,599 152,382 
Noninterest income:
Trust fee income1,835 1,998 2,102 2,086 2,126 5,935 6,317 
Service charges on deposit accounts1,522 1,574 1,504 1,486 1,422 4,600 4,018 
Investment advisory commission and fee income4,199 4,812 5,152 4,885 4,796 14,163 14,051 
Insurance commission and fee income4,442 4,629 5,570 3,726 3,837 14,641 12,631 
Other service fee income3,124 3,309 2,756 2,759 2,576 9,189 7,516 
Bank owned life insurance income1,153 705 699 719 925 2,557 3,262 
Net gain on sales of investment securities— — 30 5 21 30 140 
Net gain on mortgage banking activities817 1,230 1,929 2,518 3,224 3,976 12,623 
Other income867 741 728 1,008 1,625 2,336 3,474 
Total noninterest income17,959 18,998 20,470 19,192 20,552 57,427 64,032 
Noninterest expense:
Salaries, benefits and commissions29,400 29,133 28,245 27,374 26,641 86,778 76,817 
Net occupancy2,504 2,422 2,716 2,477 2,525 7,642 7,920 
Equipment968 977 982 985 1,000 2,927 2,914 
Data processing3,901 3,708 3,567 3,355 3,274 11,176 9,388 
Professional fees2,521 2,844 2,138 1,750 2,174 7,503 5,937 
Marketing and advertising605 693 425 683 539 1,723 1,380 
Deposit insurance premiums662 812 893 698 765 2,367 2,014 
Intangible expenses309 342 341 267 214 992 712 
Other expense5,795 6,440 6,105 5,746 6,116 18,340 16,992 
Total noninterest expense46,665 47,371 45,412 43,335 43,248 139,448 124,074 
Income before taxes25,986 16,424 25,168 21,990 26,173 67,578 92,340 
Income tax expense5,185 3,258 4,851 4,578 5,262 13,294 17,951 
Net income$20,801 $13,166 $20,317 $17,412 $20,911 $54,284 $74,389 
Net income per share:
Basic$0.71 $0.45 $0.69 $0.59 $0.71 $1.85 $2.53 
Diluted$0.71 $0.45 $0.68 $0.59 $0.71 $1.84 $2.52 
Dividends declared per share$0.21 $0.21 $0.20 $0.20 $0.20 $0.62 $0.60 
Weighted average shares outstanding29,290,829 29,490,154 29,542,467 29,471,304 29,420,256 29,440,228 29,379,774 
Period end shares outstanding29,242,451 29,365,775 29,636,425 29,500,542 29,438,402 29,242,451 29,438,402 



Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
September 30, 2022
For the three months ended,For the nine months ended,
Profitability Ratios (annualized)9/30/20226/30/20223/31/202212/31/20219/30/20219/30/20229/30/2021
Return on average assets1.21 %0.76 %1.17 %0.97 %1.24 %1.05 %1.53 %
Return on average shareholders' equity10.67 %6.85 %10.64 %9.06 %11.12 %9.39 %13.72 %
Return on average tangible common equity (1)(3)14.06 %9.10 %14.04 %11.93 %14.63 %12.40 %18.21 %
Net interest margin (FTE)3.67 %3.19 %2.89 %2.86 %3.11 %3.25 %3.13 %
Efficiency ratio (2)60.6 %66.6 %67.0 %64.3 %61.8 %64.6 %59.8 %
Capitalization Ratios
Dividends declared to net income29.7 %47.1 %29.1 %33.9 %28.1 %33.7 %23.7 %
Shareholders' equity to assets (Period End)10.92 %11.40 %10.89 %10.86 %10.83 %10.92 %10.83 %
Tangible common equity to tangible assets (1)8.55 %8.97 %8.58 %8.56 %8.55 %8.55 %8.55 %
Common equity book value per share$25.79 $26.01 $26.11 $26.23 $25.68 $25.79 $25.68 
Tangible common equity book value per share (1)$19.67 $19.91 $20.06 $20.14 $19.75 $19.67 $19.75 
Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio9.87 %9.45 %9.35 %9.13 %9.53 %9.87 %9.53 %
Common equity tier 1 risk-based capital ratio10.51 %10.62 %11.07 %11.08 %11.15 %10.51 %11.15 %
Tier 1 risk-based capital ratio10.51 %10.62 %11.07 %11.08 %11.15 %10.51 %11.15 %
Total risk-based capital ratio13.10 %13.23 %13.73 %13.77 %13.87 %13.10 %13.87 %
(1) Non-GAAP metric. A reconciliation of this and other non-GAAP financial measures is included at the end of this document.
(2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.
(3) Net income before amortization of intangibles to average tangible common equity.



Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
For the Three Months Ended,
Tax Equivalent BasisSeptember 30, 2022June 30, 2022
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$49,476 $252 2.02 %$474,260 $824 0.70 %
U.S. government obligations565 3 2.11 2,000 11 2.21 
Obligations of state and political subdivisions*2,308 18 3.09 2,302 17 2.96 
Other debt and equity securities514,462 3,010 2.32 511,439 2,727 2.14 
Federal Home Loan Bank, Federal Reserve Bank and other stock28,368 435 6.08 26,221 344 5.26 
Total interest-earning deposits, investments and other interest-earning assets595,179 3,718 2.48 1,016,222 3,923 1.55 
Commercial, financial, and agricultural loans977,549 11,996 4.87 937,846 9,037 3.86 
Paycheck Protection Program loans3,754 40 4.23 7,644 155 8.13 
Real estate—commercial and construction loans3,105,821 34,100 4.36 3,004,509 28,527 3.81 
Real estate—residential loans1,256,509 12,492 3.94 1,166,201 10,758 3.70 
Loans to individuals27,197 381 5.56 26,782 305 4.57 
Municipal loans and leases*235,433 2,432 4.10 235,922 2,404 4.09 
Lease financings145,856 2,195 5.97 141,676 2,105 5.96 
     Gross loans and leases5,752,119 63,636 4.39 5,520,580 53,291 3.87 
          Total interest-earning assets6,347,298 67,354 4.21 6,536,802 57,214 3.51 
Cash and due from banks62,930 55,634 
Allowance for credit losses, loans and leases(72,355)(68,426)
Premises and equipment, net50,476 50,266 
Operating lease right-of-use assets30,740 30,222 
Other assets378,377 357,903 
      Total assets$6,797,466 $6,962,401 
Liabilities:
Interest-bearing checking deposits$881,395 $1,251 0.56 %$851,324 $570 0.27 %
Money market savings1,246,795 3,709 1.18 1,405,536 1,552 0.44 
Regular savings1,086,191 302 0.11 1,070,480 237 0.09 
Time deposits416,539 1,189 1.13 452,989 1,227 1.09 
Total time and interest-bearing deposits3,630,920 6,451 0.70 3,780,329 3,586 0.38 
Short-term borrowings104,453 524 1.99 17,253 11 0.26 
Long-term debt95,000 324 1.35 95,000 321 1.36 
Subordinated notes99,065 1,328 5.32 98,988 1,328 5.38 
     Total borrowings298,518 2,176 2.89 211,241 1,660 3.15 
     Total interest-bearing liabilities3,929,438 8,627 0.87 3,991,570 5,246 0.53 
Noninterest-bearing deposits2,014,371 2,122,844 
Operating lease liabilities33,786 33,300 
Accrued expenses and other liabilities46,772 43,277 
     Total liabilities6,024,367 6,190,991 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital299,135 298,241 
Retained earnings and other equity316,180 315,385 
     Total shareholders' equity773,099 771,410 
     Total liabilities and shareholders' equity$6,797,466 $6,962,401 
Net interest income$58,727 $51,968 
Net interest spread3.34 2.98 
Effect of net interest-free funding sources0.33 0.21 
Net interest margin3.67 %3.19 %
Ratio of average interest-earning assets to average interest-bearing liabilities161.53 %163.77 %
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustment.
Net interest income includes net deferred costs of $(498) thousand and $(618) thousand for the three months ended September 30, 2022 and June 30, 2022.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances.
Tax-equivalent amounts for the three months ended September 30, 2022 and June 30, 2022 have been calculated using the Corporation’s federal applicable rate of 21.0%.



Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
For the Three Months Ended September 30,
Tax Equivalent Basis20222021
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$49,476 $252 2.02 %$530,191 $189 0.14 %
U.S. government obligations565 3 2.11 6,999 36 2.04 
Obligations of state and political subdivisions*2,308 18 3.09 2,992 24 3.18 
Other debt and equity securities514,462 3,010 2.32 385,289 1,516 1.56 
Federal Home Loan Bank, Federal Reserve Bank and other stock28,368 435 6.08 26,713 334 4.96 
Total interest-earning deposits, investments and other interest-earning assets595,179 3,718 2.48 952,184 2,099 0.87 
Commercial, financial, and agricultural loans977,549 11,996 4.87 880,986 7,412 3.34 
Paycheck Protection Program loans3,754 40 4.23 162,611 4,162 10.15 
Real estate—commercial and construction loans3,105,821 34,100 4.36 2,784,398 25,634 3.65 
Real estate—residential loans1,256,509 12,492 3.94 1,100,799 10,171 3.67 
Loans to individuals27,197 381 5.56 26,048 253 3.85 
Municipal loans and leases*235,433 2,432 4.10 247,603 2,504 4.01 
Lease financings145,856 2,195 5.97 117,966 1,856 6.24 
     Gross loans and leases5,752,119 63,636 4.39 5,320,411 51,992 3.88 
          Total interest-earning assets6,347,298 67,354 4.21 6,272,595 54,091 3.42 
Cash and due from banks62,930 59,642 
Allowance for credit losses, loans and leases(72,355)(72,606)
Premises and equipment, net50,476 55,685 
Operating lease right-of-use assets30,740 31,998 
Other assets378,377 350,863 
      Total assets$6,797,466 $6,698,177 
Liabilities:
Interest-bearing checking deposits$881,395 $1,251 0.56 %$857,098 $537 0.25 %
Money market savings1,246,795 3,709 1.18 1,382,832 922 0.26 
Regular savings1,086,191 302 0.11 998,568 281 0.11 
Time deposits416,539 1,189 1.13 496,702 1,490 1.19 
Total time and interest-bearing deposits3,630,920 6,451 0.70 3,735,200 3,230 0.34 
Short-term borrowings104,453 524 1.99 15,116 2 0.05 
Long-term debt95,000 324 1.35 95,000 324 1.35 
Subordinated notes99,065 1,328 5.32 98,754 1,328 5.34 
     Total borrowings298,518 2,176 2.89 208,870 1,654 3.14 
     Total interest-bearing liabilities3,929,438 8,627 0.87 3,944,070 4,884 0.49 
Noninterest-bearing deposits2,014,371 1,931,525 
Operating lease liabilities33,786 35,094 
Accrued expenses and other liabilities46,772 41,303 
     Total liabilities6,024,367 5,951,992 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital299,135 297,482 
Retained earnings and other equity316,180 290,919 
     Total shareholders' equity773,099 746,185 
     Total liabilities and shareholders' equity$6,797,466 $6,698,177 
Net interest income$58,727 $49,207 
Net interest spread3.34 2.93 
Effect of net interest-free funding sources0.33 0.18 
Net interest margin3.67 %3.11 %
Ratio of average interest-earning assets to average interest-bearing liabilities161.53 %159.04 %
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred (costs) fees of $(498) thousand and $3.0 million for the three months ended September 30, 2022 and 2021, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances.
Tax-equivalent amounts for the three months ended September 30, 2022 and 2021 have been calculated using the Corporation’s federal applicable rate of 21.0%.


Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
For the Nine Months Ended September 30,
Tax Equivalent Basis20222021
AverageIncome/AverageAverageIncome/Average
(Dollars in thousands)BalanceExpenseRateBalanceExpenseRate
Assets:
Interest-earning deposits with other banks$416,466 $1,433 0.46 %$328,768 $291 0.12 %
U.S. government obligations2,578 40 2.07 6,999 107 2.04 
Obligations of state and political subdivisions*2,314 54 3.12 6,838 187 3.66 
Other debt and equity securities513,491 8,076 2.10 371,355 4,147 1.49 
Federal Home Loan Bank, Federal Reserve Bank and other stock27,239 1,134 5.57 26,319 1,042 5.29 
Total interest-earning deposits, investments and other interest-earning assets962,088 10,737 1.49 740,279 5,774 1.04 
Commercial, financial, and agricultural loans939,261 28,604 4.07 830,248 21,120 3.40 
Paycheck Protection Program loans9,880 786 10.64 358,231 13,464 5.03 
Real estate—commercial and construction loans3,005,714 88,447 3.93 2,703,100 75,023 3.71 
Real estate—residential loans1,180,202 33,132 3.75 1,067,855 29,880 3.74 
Loans to individuals26,598 924 4.64 25,925 769 3.97 
Municipal loans and leases*237,928 7,270 4.09 248,191 7,632 4.11 
Lease financings141,041 6,375 6.04 111,569 5,412 6.49 
     Gross loans and leases5,540,624 165,538 3.99 5,345,119 153,300 3.83 
          Total interest-earning assets6,502,712 176,275 3.62 6,085,398 159,074 3.49 
Cash and due from banks57,455 55,983 
Allowance for credit losses, loans and leases(70,950)(76,265)
Premises and equipment, net51,551 55,803 
Operating lease right-of-use assets30,453 33,334 
Other assets363,810 355,323 
      Total assets$6,935,031 $6,509,576 
Liabilities:
Interest-bearing checking deposits$871,393 $2,264 0.35 %$820,800 $1,514 0.25 %
Money market savings1,397,220 6,165 0.59 1,282,470 2,606 0.27 
Regular savings1,059,644 777 0.10 979,013 861 0.12 
Time deposits447,497 3,722 1.11 502,414 4,808 1.28 
Total time and interest-bearing deposits3,775,754 12,928 0.46 3,584,697 9,789 0.37 
Short-term borrowings46,765 537 1.54 17,363 7 0.05 
Long-term debt95,000 962 1.35 97,088 993 1.37 
Subordinated notes98,989 3,984 5.38 151,060 5,822 5.15 
     Total borrowings240,754 5,483 3.04 265,511 6,822 3.44 
     Total interest-bearing liabilities4,016,508 18,411 0.61 3,850,208 16,611 0.58 
Noninterest-bearing deposits2,067,428 1,854,648 
Operating lease liabilities33,514 36,636 
Accrued expenses and other liabilities44,630 43,023 
     Total liabilities6,162,080 5,784,515 
Shareholders' Equity:
Common stock157,784 157,784 
Additional paid-in capital298,784 296,744 
Retained earnings and other equity316,383 270,533 
     Total shareholders' equity772,951 725,061 
     Total liabilities and shareholders' equity$6,935,031 $6,509,576 
Net interest income$157,864 $142,463 
Net interest spread3.01 2.91 
Effect of net interest-free funding sources0.24 0.22 
Net interest margin3.25 %3.13 %
Ratio of average interest-earning assets to average interest-bearing liabilities161.90 %158.05 %
*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred (costs) fees of $(1.3) million and $8.0 million for the nine months ended September 30, 2022 and 2021, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances.
Tax-equivalent amounts for the nine months ended September 30, 2022 and 2021 have been calculated using the Corporation’s federal applicable rate of 21.0%.


Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
September 30, 2022
(Dollars in thousands)
Industry DescriptionTotal Outstanding Balance (excl PPP)% of Commercial Loan Portfolio
CRE - Retail$378,087 7.9 %
Animal Production332,130 7.0 
CRE - Multi-family263,698 5.5 
CRE - 1-4 Family Residential Investment249,149 5.2 
CRE - Office201,659 4.2 
CRE - Industrial / Warehouse185,952 3.9 
Hotels & Motels (Accommodation)170,627 3.6 
Nursing and Residential Care Facilities168,576 3.5 
Education155,122 3.3 
Specialty Trade Contractors147,227 3.1 
Homebuilding (tract developers, remodelers)133,902 2.8 
Motor Vehicle and Parts Dealers113,639 2.4 
Merchant Wholesalers, Durable Goods108,825 2.3 
CRE - Medical Office105,744 2.2 
CRE - Mixed-Use - Residential105,702 2.2 
Crop Production91,597 1.9 
CRE - Mixed-Use - Commercial85,172 1.8 
Food Manufacturing84,131 1.8 
Wood Product Manufacturing75,768 1.6 
Rental and Leasing Services74,514 1.6 
Administrative and Support Services73,558 1.5 
Religious Organizations, Advocacy Groups73,091 1.5 
Merchant Wholesalers, Nondurable Goods70,679 1.5 
Food Services and Drinking Places70,498 1.5 
Personal and Laundry Services60,651 1.3 
Fabricated Metal Product Manufacturing56,640 1.2 
Repair and Maintenance56,623 1.2 
Miniwarehouse / Self-Storage56,279 1.2 
Truck Transportation50,969 1.1 
Industries with >$50 million in outstandings$3,800,209 79.8 %
Industries with <$50 million in outstandings $962,480 20.2 %
Total Commercial Loans$4,762,689 100.0 %
Consumer Loans and Lease FinancingsTotal Outstanding Balance
Real Estate-Residential Secured for Personal Purpose$685,771 
Real Estate-Home Equity Secured for Personal Purpose175,843 
Loans to Individuals26,679 
Lease Financings196,070 
Total Consumer Loans and Lease Financings$1,084,363 
Total$5,847,052 



Univest Financial Corporation
Non-GAAP Reconciliation
September 30, 2022
Management uses non-GAAP measures in its analysis of the Corporation's performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release.
As of or for the three months ended,As of or for the nine months ended,
(Dollars in thousands)9/30/20226/30/20223/31/202212/31/20219/30/20219/30/20229/30/2021
Net income$20,801 $13,166 $20,317 $17,412 $20,911 $54,284 $74,389 
Amortization of intangibles, net of tax244 270 269 211 169 784 562 
Net income before amortization of intangibles$21,045 $13,436 $20,586 $17,623 $21,080 $55,068 $74,951 
Shareholders' equity$754,187 $763,925 $773,855 $773,794 $756,023 $754,187 $756,023 
Goodwill(175,510)(175,510)(175,510)(175,510)(172,559)(175,510)(172,559)
Other intangibles (a)(3,485)(3,678)(3,936)(4,210)(1,922)(3,485)(1,922)
Tangible common equity$575,192 $584,737 $594,409 $594,074 $581,542 $575,192 $581,542 
Total assets$6,907,397 $6,700,813 $7,107,740 $7,122,421 $6,979,852 $6,907,397 $6,979,852 
Goodwill(175,510)(175,510)(175,510)(175,510)(172,559)(175,510)(172,559)
Other intangibles (a)(3,485)(3,678)(3,936)(4,210)(1,922)(3,485)(1,922)
Tangible assets$6,728,402 $6,521,625 $6,928,294 $6,942,701 $6,805,371 $6,728,402 $6,805,371 
Average shareholders' equity$773,099 $771,410 $774,358 $762,334 $746,185 $772,951 $725,061 
Average goodwill(175,510)(175,510)(175,510)(173,553)(172,559)(175,510)(172,559)
Average other intangibles (a)(3,550)(3,791)(4,090)(2,696)(1,983)(3,808)(2,217)
Average tangible common equity$594,039 $592,109 $594,758 $586,085 $571,643 $593,633 $550,285 
Loans and leases held for investment, gross$5,849,259 $5,661,777 $5,400,786 $5,310,017 $5,252,045 $5,849,259 $5,252,045 
Paycheck Protection Program ("PPP") loans (2,207)(5,358)(10,298)(31,748)(85,601)(2,207)(85,601)
Gross loans and leases, excluding PPP loans$5,847,052 $5,656,419 $5,390,488 $5,278,269 $5,166,444 $5,847,052 $5,166,444 
(a) Amount does not include mortgage servicing rights